Although there are a great many different types of currency, Bitcoin is unique because it is the first “cryptocurrency”. As a result, it’s also one of the most interesting. As an example, consider the economic problems in China where credit card fraud is at an all-time high. Despite the money in circulation being revalued and recently devalued, currency is still worth only half its original value.
Since it’s unlikely that a society will establish itself with no money, the question remains as to why, if money makes people richer, will a government be able to establish itself? One possible answer to this question is the fact that governments collect taxes which in turn makes their citizens wealthier. The question is whether or not this wealth distribution is fair.
This Economics of Bitcoin article looks at another concept that relates to money, called “capital.” Capital is something that has value. So what does the Economics of Bitcoin have to say about capital? In this article, we will explore Capital.
Capital is anything that adds value to something. For example, if someone invests in a new stock, they invest in that particular stock as well as the company that has established it.
If you think about gold coins, these are considered capital as well. Now, although gold coins are considered capital, they have very little utility outside of being physical assets. So why would we want to value something like gold coins?
The main reason for wanting to value something that has some intrinsic value is that it can act as money and will keep the price of things in balance. Bitcoin in its current form might be considered capital and, as we have seen, Bitcoin is often used as a medium of exchange.
Perhaps the most important aspect of value is the only thing that creates moneyis humans are emotion and humans are money. There is nothing that is really finite and as a result, humans will go to great lengths to create and retain value. Currency is often created by those who control some of the world’s most powerful technology and I’m sure that some have calculated Bitcoin as an advanced form of money.
As we have seen, the Economic of Bitcoin can actually be applied to currency. As a result, the question remains as to whether or not Bitcoin will become accepted as a medium of exchange. The answer is that Bitcoin is not currently widely accepted as a medium of exchange, but that is likely due to its very low liquidity. In addition, it’s just not worth a lot of people’s time.